Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow (FCF).

ASP Free Cash Flow Analysis

Free cash flow, a measure commonly used by analysts to assess a company's profitability, represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

The Free Cash Flow is calculated using a number of methods including using Operating Cash Flow. Following is the formula to calculate Free Cash Flow based on Operating Cash Flow.

Free Cash Flow = Operating Cash Flow - Capital Expenditures

Using above formula to calculate Free Cash Flow for Aspermont Limited (ASP), the free cash flow value is 2.62M.

All amounts in AUD

Operating Cash
2.63M
Capital Expenditure
-8k
Free Cash Flow
2.62M

Aspermont Limited has a positive free cash flow as per the latest annual Cash flow statement released by the company. Positive free cash flow is cruscial for the financial health of a company, which can be used to pay dividends, expand operations, and deleverage its balance sheet (i.e., reduce debt).

ASP Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Aspermont Limited (ASX:ASP).

30 Sep 202130 Sep 202030 Sep 201930 Sep 2018
Net Income115k-970k-7.45M-943k
Depreciation505k511k485k36k
Change To Netincome731k760k5.63M-1.32M
Change To Account Receivables-74k36k527k-630k
Change To Liabilities993k1.21M-163k2.28M
Change To Operating Activities-253k7k7k7k
Total Cash From Operating Activities2.63M2.48M-393k-436k
Capital Expenditures-8k-46k-36k-74k
Other Cashflows From Investing Activities-35k-57k-55k-55k
Total Cashflows From Investing Activities-939k-636k-593k-725k
Net Borrowings-484k-484k-346k-346k
Other Cashflows From Financing Activities-690k-58k-6k-169k
Total Cash From Financing Activities2.15M615k-352k1.88M
Effect Of Exchange Rate-1k-5k6k3k
Change In Cash3.85M2.46M-1.33M717k
Issuance Of Stock3.33M1.16M1.16M2.04M